AT&T (T) this afternoon reported Q1 revenue that missed analysts' expectations and profit that was in line with consensus, citing "challenging" market conditions. It has 4.6 million AT&T Fiber customer locations, with plans to add two million in 2017.
DirecTV, though, remained flat at 21 million subscribers and DirecTV Now, the recently launched online service, helped to offset defections from U-verse, though the company did not disclose specifics.
2 USA wireless carrier, reported a drop in quarterly revenue and unexpectedly lost postpaid subscribers as lower prices for its unlimited plans failed to attract customers in a saturated wireless market.
It added 2.7M net wireless customers: 2.1M in the USA and 633,000 in Mexico. Phone additions are considered important because they are the most lucrative mobility accounts, and customers with postpaid phone accounts tend to stay longer. Both of the larger companies rolled out their own unlimited offers, though AT&T Chief Executive Randall Stephenson said during a call with analysts that "this has made an already competitive market even more so, and our response to the unlimited data plans was probably a little slow".
AT&T did add 282,000 prepaid customers, who pay less.
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Dallas, Texas-based telecom giant's first-quarter profit dropped to $3.56 billion or $0.56 per share from $3.89 billion or $0.61 per share a year ago.
AT&T, like its telecommunications rival Verizon Communications Inc., faced heightened competition from unlimited-data plans offered by T-Mobile US Inc. and Sprint Corp.
Business wireless revenue was down 2.1 percent year over year to $9.4 billion, reflecting lower equipment revenues from lower sales. The stock, however, gained $0.24 or 0.60% in the after-hours trade.
AT&T added 115,000 broadband connections. The company expects to see EPS growth in the mid-single-digit range, with free cash flow in the $18 billion range. However, the company is no longer providing revenue guidance primarily due to the unpredictability of wireless handset sales.